HomeMy WebLinkAboutMinutes - 10/19/2010 - Police Pension BoardPOLICE PENSION BOARD
CITY OF MCHENRY
Tuesday, October 19, 2010
A meeting of the McHenry Police Pension Board was called to order on Tuesday, October 19, 2010, at
3:30 PM in the City of McHenry Municipal Center, 333 South Green Street. At roll call, the following
members were present: Officer Robert Roske, Brian Aalto, Bob Hettermann, and Ormel Prust. Absent:
Daniel Kinnerk. Other present at the meeting: retired Sgt. Jeff Foerster; Gary Karshna, Capital Gains;
Jim Schmidt, LPL Financial; Carolyn Lynch, and Marci Geraghty; City of McHenry.
Reading and Approval of Minutes
Motion by Prust, seconded by Hettermann to approve the July 20, 2010 regular board meeting
minutes as presented and to hold them for audit. All ayes, motion carried.
Motion by Hettermann, seconded by Roske to approve the August 31, 2010 special board meeting
minutes as presented and to hold them for audit. All ayes, motion carried.
Treasurer's Report
Carolyn Lynch presented the Treasurer Report for the period ending, September 30, 2010. Full market
value of the fund for the period was $16,369,642.28, +7% from last quarter and +4% from last calendar
year. Prust made a motion, seconded by Hettermann to approve the Treasurer Report for the
period ending September 30, 2010, as presented and to hold it for audit. All ayes, motion carried.
Old Business
Capital Gains, Inc. Gary Karshna reported on fixed assets as of September 30, 2010.
FY YTD:
Portfolio Market Valuation $8,154,217
Portfolio Book Valuation $8,056,016
Transactions: Four positions were called and three positions were sold capturing profits of $16,090. The
proceeds were invested in a combination of shorter term US Agency and Illinois taxable municipal
securities. Remaining cash will be invested in the month of October, after interest rates move to more
attractive yield levels, or when securities priced cheap to the market are available for acquisition.
LPL Financial. Jim Schmidt presented an updated on equity investments for the period ending October
15, 2010 as follows:
AMCAP:
Small Cap World
Washington Mutual
Cap World Gr. & Inc.
Total:
YTD CHANGE
$1,125,413
5.51 %
$1,097,536
17.06%
$1,732,989
6.81 %
$1,924,223
5.87%
$6,298,418
8.19%
Schmidt noted that the fund is still outperforming the S&P 500, which is 7.15% year-to-date.
�-- Jim Schmidt left the meeting at 4:00 PM.
Police Pension Board of Trustees
October 19, 2010
Page Two
New Business
Applications for Retirement Pension. Roske presented an application for retirement pension submitted by
Deputy Chief Roger Pechous. DC Pechous earned 30 years and 5 days of service time and will received
75% of $103,448.38 annually. Aalto made a motion, seconded by Hettermann to accept the
application for retirement benefits from Deputy Chief Roger Pechous as presented. All ayes,
motion carried.
Roske presented an application for participation in the McHenry Police Pension Fund submitted by
Matthew Justin Voelker who was hired as a patrol officer on September 7, 2010. Prust made a motion
seconded by Hettermann to approve the pension application from retired Sgt. Jeffrey Foerster as
presented. All ayes, motion carried.
Roske presented an application for reinstatement and transfer of creditable service from former McHenry
Patrol Officer Victor Chirio who was employed by the City of McHenry from June 24, 1994 through
August 13, 1995, at which time he withdrew his pension. Chirio is requesting a reinstatement of his
pension benefits and transfer of said benefits to the Wheeling Police Department pension fund. Total
cost for this transaction is $14,287, which includes Chirio's contribution of $6,945 and the balance to be
paid by the City of McHenry. Prust made a motion, seconded by Aalto to approve the application
for reinstatement and transfer of creditable service from former McHenry patrol Officer Victor
Chirio. All ayes, motion carried.
Discussion: Financial Consultants. Bob Hettermann suggested that the board seek requests for
proposals from at least three entities for fixed and equity account management. Although the board is
satisfied with the current service providers, the board agreed that it would benefit the pension fund to
`- assess the market. The board tabled the discussion to the January meeting at which time Roske will
present more information about the RFP process to the board.
2011 Pension Board of Trustees Meetina Schedule
Prust made a motion, seconded by Aalto to approve the 2011 Pension Board of Trustees meeting
schedule as presented: January 18, April 10, July 19, and October 18. All ayes, motion carried
Bills for Approval
An invoice from Capital Gains, Inc. for $4,447 was presented for approval. Hettermann made a motion,
seconded by Aalto to approve payment to Capital Gains, Inc as presented. All ayes, motion
carried.
Adiournment
President Roske announced that the next regular meeting of the Pension Board of Trustees is scheduled
for January 18, 2011. Aalto made a motion, seconded by Prust to adjourn the meeting. All ayes,
motion carried. The meeting was adjourned at 4:25 PM.
Respectfully submitted,
CXL c.t
Marci Geraghty, Re rdin ecretary